MANILA — Motorists may see fuel prices increase by as much as PHP1.50 per liter next week as global oil prices remain volatile, an oil industry official said Friday.

Jetti Petroleum Inc. president Leo Bellas said diesel prices could either go down by as much as PHP0.70 per liter or increase by up to PHP1.20 per liter.

Gasoline prices, meanwhile, may decrease by as much as PHP0.50 per liter but could also rise by as much as PHP1.50 per liter.

Bellas said global crude oil prices have softened amid improving supply conditions despite tempered optimism over the interim peace agreement between the United States and Iran and ongoing negotiations.

“World crude oil prices have eased down, despite the tempered optimism over the US-Iran interim peace deal and ongoing negotiations, on improving broader supply outlook as physical flows through the Strait of Hormuz gradually recovers, and the return of disrupted Middle Eastern barrels as Gulf producers ramp up production,” Bellas said.

He added that a sanctions waiver on Iranian oil has also weighed on prices.

“This will allow Iran-origin crude oil and other petroleum products into the market,” he said.

For diesel, Bellas said Asian diesel and middle distillate benchmarks remain relatively weak due to expectations of increased regional supply.

“Refiners have been maximizing distillates output and the prospect of a fresh wave of supply of Middle Eastern crude are seen to pressure diesel and middle distillate prices,” he said.

On gasoline, Bellas said demand is expected to remain strong because of seasonal consumption.

“Firm demand from Indonesia while Chinese exports stay limited due to current export restrictions will continue to support Asian gasoline prices,” he said.

He also noted that shipping activity through the Strait of Hormuz has yet to fully recover despite the political agreement.

“Uncertainty still remains over the durability of the US-Iran accord. The recent incident of a suspected attack on a cargo vessel in the Strait of Hormuz has reignited fears that the preliminary deal would not hold,” Bellas added.